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EDITORIAL: Tax hike partially 'up in smoke' 

Jump to full article: Chattanooga (TN) Times & Free Press, 2009-11-23

Intro:

It is a bad idea to use tobacco taxes to fund medical care for children in poor families. That's because it makes the funding dependent upon Americans who unwisely choose to smoke. But Congress did that early this year, and it's running into big unintended consequences.

The tax on roll-your-own cigarettes rose from $1.10 per pound to $24.78 per pound. But as it turns out, pipe tobacco is very close to the tobacco used to roll cigarettes. . . .

The loophole is costing the government "hundreds of millions of dollars," The Associated Press noted.

While tax "evasion" is illegal, it is no surprise that companies, like individuals, engage in tax "avoidance."

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